When TANF replaced AFDC in 1996 the marginal subsidy for state welfare spending was eliminated. This paper exploits data from a period in the history of AFDC when the structure of federal subsidies and legislative changes allow us to estimate not only the price and income elasticities of federal...

This paper estimates the degree to which state spending is influenced by the spending of neighboring states. Focusing on mandated increases in welfare spending, I find that each dollar of state spending causes spending in neighboring states to increase by 37 to 88 cents. I use more plausibly...

This paper estimates the degree to which state spending is influenced by the spending of neighboring states. Focusing on mandated increases in welfare spending, I find that each dollar of state spending causes spending in neighboring states to increase by 37 to 88 cents. I use more plausibly...

When TANF replaced AFDC in 1996 the marginal subsidy for state welfare spending was eliminated. This paper exploits data from a period in the history of AFDC when the structure of federal subsidies and legislative changes allow us to estimate not only the price and income elasticities of federal...